Mike Newell's Luton side made a strong start to the season, topping the table after the first three games and staying in the play-off places until mid-December. However, a poor second half to the season saw Luton eventually slip down the table to finish in tenth place, albeit above more-fancied sides such as Southampton and Leicester City. Striker Steve Howard was Luton's top goalscorer for the fifth season running, scoring 15 goals in total, despite playing parts of the campaign as a makeshift centre-back following injuries to most of the Luton defence. Indeed, this proved a common occurrence throughout the season, with Luton's relatively small squad forcing team members to play out of position when injuries or suspensions materialised.

The 2004–05 season had seen Luton promoted to the second tier of English football for the first time in almost 25 years, winning the League One title with 98 points and both the most goals scored and fewest goals conceded. Six Luton players had been named in the Team of the Year, with 20-year-old centre-back Curtis Davies being named League One Player of the Year.[1][2] Key players Sol Davis, Kevin Nicholls, Ahmet Brković and Steve Howard had all agreed contract extensions with the club in the face of transfer speculation, while squad players Lee Mansell and David Bayliss had been released.

Luton began their season on 6 August with a 2–1 away win to recently-relegated Crystal Palace, with Steve Howard and Ahmet Brković scoring, and captain Kevin Nicholls uncharacteristically missing a penalty.[7] After the game, Luton manager Mike Newell reacted to comments in the Crystal Palace match programme that had suggested the game would be Luton's "cup final". Newell stated that "I do not expect to read condescending comments from fellow professionals."[8] Three days later, Luton beat another side just relegated from the Premier League, winning 3–2 against Southampton at Kenilworth Road. New signing Dean Morgan scored the winning goal in stoppage-time.[9] A 0–0 home draw with Leeds United was followed a week later with a 2–1 defeat to Stoke City in which Steve Howard was sent off for spitting at Carl Hoefkens. Howard received a three-game ban after Luton's appeal was rejected.[10][11][12]

Luton were close to signing Ghanaian international midfielder Anthony Obodai from Ajax during the month, but the move fell through on 28 August due to complications with his visa.[15]

Warren Feeney scored his first Luton goal in a 2–1 home victory against Millwall on 29 August to put Luton into third position in the table.[16] Defender Curtis Davies scored the other goal in what would prove to be his last game in a Luton shirt; on 31 August, transfer deadline day, Davies moved to Premier League side West Bromwich Albion for a fee of £3 million – both a Luton and West Brom record in terms of money received and spent respectively.[17] Midfielder Michael Leary moved to Bristol Rovers on a one-month loan the same day.[18]

On 1 November, chairman Bill Tomlins announced that the club had changed its plans to build a new stadium near to Junction 10 of the M1 motorway, after being told the site would not be viable if Luton Airport was to earn permission to build a new runway.[33] Instead, the owners began exploring the possibility of building a new stadium in time for the 2008–09 season near to Junction 12 – almost six miles away from their existing home of Kenilworth Road. Manager Mike Newell exhibited the first signs of a strained relationship with the club's board, criticising the lack of direction from the owners and stating that "[the owners] have been in 18 months, so why has it taken them 18 months to find out they can't build a stadium at Junction 10?"[34]

Luton won just one of their six league games throughout December, pushing them out of the play-off positions, which they would not return to for the rest of the season. A heavy loss to leaders Reading on 3 December was followed up with narrow defeats to Southampton and Stoke City.[41][42][43] A 1–1 draw on Boxing Day at Derby County was trailed by a 3–0 victory over strugglers Brighton & Hove Albion two days later.[44][45] The club then lost 1–0 to Ipswich Town on New Year's Eve to drop to tenth in the table.[46]

Updated to games played on 2 December 2011.
Source: RSSSF
Rules for classification: 1) points; 2) goal difference; 3) number of goals scored(C) = Champion; (R) = Relegated; (P) = Promoted; (E) = Eliminated; (O) = Play-off winner; (A) = Advances to a further round.
Only applicable when the season is not finished:(Q) = Qualified to the phase of tournament indicated; (TQ) = Qualified to tournament, but not yet to the particular phase indicated; (RQ) = Qualified to the relegation tournament indicated; (DQ) = Disqualified from tournament.